But I do not think you will find the answer to my main question at that site. (If I am wrong, please tell me, I'll go read.it.) WHY is gold assigned the worth it is assigned. beyond its intrinsic worthwhile properties?

Id like to know that answer also. Is it bankers who put the value on it?

In many so called primitive cultures they dont use any money. They barter what they raise or grow or create. I would also guess that even now those cultures are far and few between.[/quote]

Thanks, James. But apparently more than just bankers place a high value on it.

But I do not think you will find the answer to my main question at that site. (If I am wrong, please tell me, I'll go read.it.) WHY is gold assigned the worth it is assigned. beyond its intrinsic worthwhile properties?

Id like to know that answer also. Is it bankers who put the value on it?

In many so called primitive cultures they dont use any money. They barter what they raise or grow or create. I would also guess that even now those cultures are far and few between.[/quote]
It is called speculation.

But I do not think you will find the answer to my main question at that site. (If I am wrong, please tell me, I'll go read.it.) WHY is gold assigned the worth it is assigned. beyond its intrinsic worthwhile properties?

Id like to know that answer also. Is it bankers who put the value on it?

In many so called primitive cultures they dont use any money. They barter what they raise or grow or create. I would also guess that even now those cultures are far and few between.

It is called speculation.[/quote]

Yes I had forgotten that. People who Buy but never have to take posession on what ever they think will go up in price. [/quote]

Sarge, yes, gold has value because people place value on it. It is pretty, has unique characteristics, it is pleasant to the eye, and it is limited in supply. Yes, it is a choice to tie its worth to other things. It also happens to be a very convenient thing to use to trade for other things.

Since a great many people wish to trade a great many things, something in short supply does not seem to be a very convenient thing to use in the trading.

How do I buy something from you? Suppose you have something that took you (arbitrarily) 5 minutes of labour (English spelling) to produce when the only thing I have to trade for that took me (arbitrarily) 8 hours of labor (US Spelling) to produce?

Regardless of gold, people "should" be able to find a way to make these trades equitably.

Regardless of gold, people "should" be able to find a way to make these trades equitably.

We have found a way. Form precious metal into thin little circles so it's easy to count and carry around in your pocket.

Guy, a problem with gold is as the economy grows the supply of gold is relatively fixed. That creates a situation of more goods and the same amount of money, hence the value of the goods will expressed in less money. That is deflation, not a good thing, probably as bad as inflation.

The problem with currency consisting of Gold coins like sovereigns, is that the gold sometimes is worth more than the face value of the coin. People then start taking them out of circulation and melting them down. The UK had that happen in 1986 when the price of copper rose and a pre 1982 2p coin was worth 3p, similarly in the USA when a penny was worth 3 cents.

Today's coins are copper plated steel and remain as their original intention was of simply being exchangeable tokens, with a nominal value. It is also an offence in the UK to melt down Coins of the Realm. The Chinese were using metal coins in 1000 BC.

The use of gold and silver as precious metals of value is mainly historical.

in 3100 B.C. there is evidence of a gold/silver value ratio in the code of Menes, the founder of the first Egyptian dynasty. It is stated that "one part of gold is equal to two and one half parts of silver in value. The three wise men brought gifts of gold and silver.

Gold was the first metal widely known to our species. When thinking about the historical progress of technology, we consider the development of iron and copper-working as the greatest contributions to our species' economic and cultural progress - but gold came first. Gold is the easiest of the metals to work. It occurs in a virtually pure and workable state, whereas most other metals tend to be found in ore-bodies that pose some difficulty in smelting.

US pennies are copper covered Zinc. IIRC they are 97% zinc. also IIRC the sinc in the coins is now becoming more valuable. what's the next cheapest metal?In a rich man's house there is no place to spit but his face.
Diogenes Of Sinope

The old soviet union stockpiled gold and other valuable items. I assume to sell or barter with if needed. Note that the old soviet system failed in part because of a lack of income/revenue all the while still having massive material wealth

Putin is a creature of the old system. nuf saidIn a rich man's house there is no place to spit but his face.
Diogenes Of Sinope